Who pays for the funeral?
Normally the cost of a funeral is paid for from the estate of the person who has died - that is, their bank accounts, property and possessions etc.
It's also worth checking their papers in case any payments are due on death or arrangements were made concerning paying for the funeral. For instance, they may have life assurance, they may have paid into an insurance fund that pays out a sum on death for funeral and other expenses, their employer’s pension scheme may pay a lump sum on death, or there might be a prepaid funeral plan.
What is a prepaid funeral plan?
Some people pay for their funeral in advance through a pre-purchase funeral plan. Pre-planning and organising your funeral can take the pressure off others as well as ensuring that your wishes are known in advance.
If you're thinking of buying a plan, it's worth shopping around and finding out what will happen to your plan if, for example, you move house, or if you die before payments are complete.
Also ask what services will and won't be included in the purchase price. Some pre-paid funeral plans only cover the cost of a basic funeral, and any extra services or items will need to be paid for separately by the person arranging the funeral.
The person who died had a bank account – can we use this to pay?
If the person who has died had a bank or building society account, this will be frozen when they die (unless it's a joint account). However, some banks and building societies will release funds to pay for the funeral (generally on receipt of the death certificate and funeral director’s bill).
If they won’t do so, if you arrange the funeral you will have to pay and then get the money back from the estate in due course. If you don’t have the funds to cover the funeral costs yourself, you might want to check with their bank whether they will release funds before you commit to any arrangements.
Can we get any official help with the costs?
If you do not have sufficient money to cover the costs and if you or a partner is in receipt of certain benefits (eg income support, pension credit, housing benefit, income-based jobseeker allowance and in some cases tax credits) you may qualify for a Social Fund Funeral Payment.
Contact your local Social Security office and request a funeral payment claim pack (SF200 form). Alternatively, the Citizens Advice Bureau can help you make a claim – there is no charge for this.
However, even if you are eligible for a Funeral Payment, bear in mind that it is not generally enough to cover the cost of even a basic funeral.
When the estate is settled, if there is sufficient money in the estate the Funeral Payment will need to be repaid.
If there are insufficient funds in the person’s estate, who is responsible for the funeral cost?
If there isn’t enough money in the estate to pay for the funeral, the costs will have to be met by those organising it.
If nobody is able to pay for the funeral, you can ask the local authority to arrange for burial or cremation. However, they will not pay towards a funeral you have arranged - you have to contact them before making any arrangements, and their arrangements will be simple and basic. When the estate is settled the council may make a claim for the costs.
I’m really worried about the cost – how much is it going to be?
Funerals can be expensive so get quotes from at least two funeral directors to see what the total costs might be. Do ask for a breakdown of the quote or a price list if they don’t provide this. Some costs are fixed but many are variable. Don’t be embarrassed to ask about cheaper options.
You may want to make some of the arrangements yourself, and this can be cheaper than having the funeral director do everything.
When will the funeral directors want payment?
Some funeral directors ask for a deposit when you make the arrangements. If this is likely to be a problem, you may want to ask a range of funeral directors whether they will require this.
The bill will usually arrive soon after the funeral. If you won’t be able to pay till you receive funds from a third party (such as a Funeral Payment or a lump sum from an employer), discuss this with the funeral director before you commit yourself to anything.
Most funeral directors will expect payment before the estate is settled. If you organise the funeral and funds are not forthcoming from the person’s account or a third party, you will need to pay and claim the money back from the estate when it is settled.
What if I think the funeral directors have overcharged me?
If you're not satisfied with the costs you're being asked to pay or with the service provided, first try to resolve it with the funeral directors themselves. If that doesn’t work, you can get advice on how to proceed from your local Citizens Advice Bureau.
